WAGYU AND JAPAN: AN AUSTRALIAN, SINGAPOREAN AND JAPANESE STORY

Over a decade ago Singaporean-born Bruce Cheung saw that Australia’s highly
regarded beef industry had yet to reach its fullest potential providing an initial
opportunity to meet demand from the highly discerning Asian and global
markets. The apex is set by Japan’s prized marbled Wagyu beef. Pardoo Beef
Corporation (t/a Pardoo Wagyu) became the vehicle for Bruce’s vision. Wagyu
beef is highly prized internationally and Pardoo exports to over a dozen
international markets.

And along the way two Japanese luminaries from different fields have played a
crucial role in helping Pardoo achieve pre-eminence in Wagyu beef circles.

Sound advice from genetics guru the late Shogo Takeda, who inspired Wagyu
production beyond Japan, enabled Pardoo to breed Wagyu cattle that thrive in
unfamiliar environments and be rewarded by winning gold medals at
prestigious competitions. The Takeda-san collaboration brings 70 years of
Wagyu experience to Pardoo.

The late Shogo Takeda and Bruce Cheung

The Shogo Takeda Genetics Centre, named after the late Takeda-san, is located
in Wundowie, Perth and is home to Pardoo’s best breeder herd run by Wagyu
Operations Manager Mark James and supported by a genetics specialist of
Japanese origin, Aiko Koyama who worked for many years with the late Shogo
Takeda-san.

Cows and calves at Shogo Takeda Genetics Centre

And renowned Iron Chef Hiroyuki Sakai of ‘La Rochelle’ fame contributed two
of his recipes to Pardoo’s premium recipe book that highlights the diverse use
of primary and secondary Waygu cuts. As an aside, Sakai-san trained at the
Hotel Oriental in Perth in the early 1960s when he was only eighteen. He is
pictured here with the Sashi book entitled ‘A Quest for Perfection’.

Chef Hiroyuki Sakai

In nine years Pardoo has become one of the larger Wagyu facilities
outside Japan with biosecurity and drought proofing advantages and
sustainable environmental practices. It has gone from a rangeland pastoral
business with two pivots and 3,500 Santa Gertrudis breeders to a herd of over
30,000 purebred and crossbred Wagyu and 20 centre
pivots. This is in addition to 5,000Hd on a long feed program, at feedlots. The
original genetics were sourced from Japan. It is useful to note that Wagyu cows
have not been exported from Japan since 1996. The global industry developed
through this genetic base using careful crossing and matching over the years.
Some local breed content was required for breeders to adapt to Australia’s
northwest environment.

Pardoo Station stretches 40km along the Indian Ocean coastline within
proximity of Eighty Mile Beach and lies above the West Canning Basin, the
second largest underground aquifer in Australia. This provides sustainable pure
water for irrigated pasture so necessary for intensive Wagyu breeding in the
dry Pilbara region. Pardoo itself has a rich heritage having been a cattle and
sheep station for over 150 years.

The Pardoo Wagyu premium brand has a superior taste that is primarily due to
the breeding process and the natural pastures on which the herds thrive.
Takeda-san’s special feeding regimen ensures 50% of their life is spent in
pristine grass-fed pastures which allows the development of a unique taste
different from grain fed Wagyu. The absence of growth hormones reinforces
Pardoo’s environmental credentials, and the company uses industry’s
AUSMEAT grading system to ensure the consistency and integrity of their beef.

A consistent winner of awards at the Australian Wagyu Association branded
beef competitions over the years, Pardoo Wagyu was again awarded two gold
medals in April 2024.

Pardoo Wagyu can be found in niche gourmet restaurants and through its
distributor networks in Australian and international markets.

Japanese in Origin, Global in Enjoyment

Soft diplomacy, particularly with connections to sport, is a well-established means of opening doors
to business and cultural interests. For Japan, Judo is such a sport. The martial art was born in Japan
in 1882, becoming an Olympic sport at the 1964 Tokyo Olympics. Drawing from historic Japanese
disciplines – such as ju-jitsu and sumo wrestling – modern judo is recognised for its practical fighting
techniques with an emphasis on self-defence with due consideration for an adversary or competitor,
and which also offers healthy physical and mental benefits.

Today more than 200 countries and regions are members of the International Judo Federation, but
in Australia it remains a niche sport with 6800 participants and 187 clubs. The University of Western
Australia Judo Club (UWAJC), established in 1988, it is currently the second largest Australian Judo
club. A volunteer-based organisation, it has regular Japanese coach exchanges on rotation every two
years thanks to a partnership to the private Kokushikan University in Setagaya, Tokyo.

Student exchanges have also taken place with the following Japanese universities – Keio (Tokyo),
Kokushikan (Tokyo), Komazawa (Tokyo), Konan (Kobe), Nagoya and Tokyo, with efforts underway to
formally link with the University of Tsukuba (Ibaraki). Western Australia’s Sister State Relationship
with Hyogo Prefecture (established in 1981) has also proven a valuable conduit for the UWAJC.
In addition to increasing WA’s medal and championship tallies, UWAJC has worked to establish a
Schools Judo Program, leading to Shenton College exchanges with Komazawa University High School
. And in addition to increasing student exchanges between WA and Japan, it is also introducing a
formal exchange program called ‘Judo plus Education’. For participants with a common interest in
judo it combines reciprocal language immersion (where students learn/improve, respectively, their
Japanese or English skills).

UWAJC maintains close relations with the broader Japanese community in Western Australia,
performing for the Japanese Consul-General and at the Japanese Film Festival, Japanese and multi-
cultural festivals, and for visiting Japanese ships.

A driving force behind the UWAJC is Stockley Davis who was one of its founders in 1988, and is
currently President as well as a coach. For his services to judo in Australia in 2020 he received a
formal commendation from the Japanese Foreign Minister. Beyond judo he was Corporate Manager
at Alto Capital (investment and corporate advisory firm for capital raising including venture capital)
for 16 years and is a co-founder of Ex Planta, a company bio-prospecting and bio-engineering plant
compounds; and also a Director of Aboardly a Company providing social connection for backpacker
and International visitors, 18 to 25 years, to local community. Stockley’s passion for judo has
provided a soft diplomacy link between Japan and Western Australia, but it wouldn’t surprise if
business connections were to follow.

“FROM JAPAN TO AUSTRALIA TO JAPAN WITH LOVE”

Nowadays, Nakamura Chocolates is celebrated for its beautiful designs and iconic flavours. However,
it started with two disenfranchised ‘salary workers’ doing 9 to 5 in Tokyo’s concrete jungle. Those
two workers were Yuki Nakamura and Marlon Schoep. And at that time, they looked at the lives of
people around them and realized that people needed and deserved more than that life, and so
began their search for how they could bring colour to the world.

For inspiration they recalled the special moments in childhood, those that were always full of joy.
They were memories of shared anticipation, excitement, pleasure and being fully present. The
feelings when a spectacular birthday cake came out at a party, or family or friends bought a special
ice-cream, or … or someone came home with a box of chocolates which were opened together? So,
Nakamura Chocolates was born as a celebration of this experience. It carries Yuki Nakamura’s family
name and crest, and it was agreed that each box of chocolates had to inspire delight, each chocolate
be a marvel, and each flavour taste exquisite.

After several years in Canada exploring her passion for chocolate, Yuki completed her formal training
at Savour Chocolate and Patisserie School in Melbourne, after which she took a position in the
kitchen of Choux Café in Swanbourne, after which Nakamura Chocolates were born.
Nakamura Chocolates has been running since 2008. The company has won various awards for its
packaging, chocolate craftsmanship and flavours and in 2019 it was a finalist in the Western
Australian Export Awards. This was because in 2017 Hon Takasagoya (a 140 year old Japanese
confectionary and delicacy company) partnered with Nakamura Chocolates with Yuki becoming the
face of Nakamura Chocolates Japan which produces and sells chocolates all over the Japanese
archipelago.

A delightful outlet was opened in Kobe, the capital city of Hyogo Prefecture (with which Western
Australia has its oldest Sister State Relationship). While available in Japan throughout the year,
Nakamura Chocolates has made the Valentine’s Day gift buying period its own. In Japan, women give
chocolates to the men in their lives on this day. A month later, on White Day, all the men who
received presents must return the favour.

In recent years Valentine’s Day sales of Nakamura Chocolates have generated revenues in excess of
seven figures. It has also given Yuki the opportunity to creatively partner with other premium
product providers. For example, Margaret River’s Woodlands Wines Chardonnay was chosen for a
range of liqueur chocolates, as was Howard Park Wines.

In 2019 Yuki’s chocolates had pride of place at two functions hosted by the Australian Ambassador
to Japan, His Excellency Richard Court AM in his private residence. The first occasion was for the visit
by Western Australian Premier Mark McGowan and the second for the Minister for Tourism Paul
Papalia when attending the inaugural flight of All Nippon Airlines (ANA) between Tokyo and Perth.
Yuki is a strong believer in growing the economic and strategic relationship between Japan and
Australia, and is also an Australia-Japan Foundation board member.

Consul-General of Japan Perth Office, Mr. Naito Yasushi, Professor Ross Garnaut AC, Partner of Clayton Utz, Mr. Mark Paganin, Ladies and Gentlemen

Welcome to Australia Japan Business Council’s November business event: WA in the Zero Carbon Japanese and World Economy.

My name is Richard Sandover.  I am Chair of the Australia-Japan Business Council.

I acknowledge the traditional custodians of the land on which we are holding this event, the Whadjuk people.  I wish to acknowledge and respect their continuing culture and the contribution they make to the life of this wonderful city and region. 

I acknowledge our hardworking board, Deputy Chair, Mayumi Laughton-Smith, and Board Members, Andrew Tan, David McCulloch, Jack Smith,  Tamas Zegrean, and Isaac Stewart.

Our mission is to expand and deepen two-way trade and investment, deepen understanding and respect for Australia’s and Japan’s interests, and the fostering of economic and cultural cooperation and partnerships with their peoples, organisations, and governments.

In this vein, AJBC provides a platform for the exchange of information on current issues and for addressing the challenges and opportunities arising from the Australia-Japan relationship.  AJBC’s objective is to enhance mutual understanding and community engagement through networking, business events, and B2B and B2G introductions.

AJBC welcomes all new members.  We have set our membership fees at a level to attract small and medium-sized businesses.  If your organisation is not already a member, we urge you to become a member and contribute to the success of AJBC and its mission.

A common desire expressed yesterday by speakers at the excellent Curtin University Engagement Event – Japan in the World: Past Present and Future, was for the need to step up collaboration between Australia and Japan in academic and industry research and the corporate and government spheres to maximise the mitigation measures to combat global carbon emissions and take advantage of the concomitant economic opportunities that flow.

The point has been made recently by eminent scientists immersed in climate change mitigation measures that without further innovation, the global biosphere will not be stabilised at 2.0 degrees Celsius or lower.  It seems based on the latest research the goal of keeping global temperatures to less than 1.5 degrees Celsius by 2050 may now be out of reach; although I believe our eminent speaker on this subject, Professor Ross Garnaut AC, is not so pessimistic.  At a 2.5 degrees celsius increase, Western Australia will lose our wheatbelt to desert.  The climate of Perth is now tracking the climate of Geraldton 30 years ago.  Geraldton is plus 400 kilometres north of Perth.

So, the citizens of Western Australia have compelling reasons both in terms of loss of habitat and reaping the economic rewards available if WA can meet the challenges and take advantage of the extraordinary economic opportunities arising from the global response to climate change.

For this to occur, WA will need to collaborate with trusted partners who can assist WA in generating cheaper, cleaner, reliable, renewable power by harnessing our natural advantages arising from our abundant wind solar, and critical minerals in scalable quantities.

Japan is an obvious partner for WA, with its manufacturing base of advanced technology, its willingness to innovate with Australia, availability of significant capital and long shared history involving Japan, the WA government, and Australian companies.  This led to WA establishing, amongst other things, the iron ore export industry in the 1960s and the LNG export industry in the 1980s and 90s.

Without the considerable initial support and collaboration of the WA and Commonwealth governments with the Japanese government, those highly successful industries would not have been possible.  I remind you that the internal rate of return on investment of the Australian iron ore exporters among companies of scale is now one of the highest in the world.

The template of deep collaboration between Australia and Japan at all levels remains valid in WA for the creation of the new industries necessary for a successful transition to a global green economy.

According to Mark Carney, UN Special Envoy on Climate Action and Finance, former Governor of the Bank of England and Bank of Canada, recently made the following points: 7-8 years ago at the Paris Accord the world was heading towards a 3.5 degrees Celsius warming.  Today we are tracking at 2.4 degrees.  He thinks realistically the world is now heading towards sub-2 degrees warming.  Five years ago, the world was spending US$500 billion on clean energy and US$900 billion on oil and gas per annum.

In 2022, the spend was US$1.2 trillion and US$900 billion on oil and gas.  This year the spend will be US$1.8 trillion on clean energy and half of that on oil and gas.  The progress that has been made is much faster than people expected at Glasgow 2 years ago.  Production of renewable energy is much more economical than it was a few years ago.  Carney thinks the ‘spend’ on solving climate emissions, now has almost unstoppable momentum.  He makes the point that this is about geo-political security and not being hostage to Putin and other large Petro-States.  It is also about economic security.  The transition to zero emissions is a fundamental driver of jobs, competitiveness, and export growth.

In his speech to the Economic and Social Outlook conference on 2 November 2023, the Commonwealth Treasurer, the Hon. Dr. Jim Chalmers, noted that in order to maximise our advantages in renewable energy and grasp the economic and industrial opportunities, we need to get projects off the ground faster.

He makes a distinction between what is required for the domestic energy transition and Australia’s medium to long-term ambition to become a renewable energy superpower.  The Treasurer notes the two objectives are intertwined and that without more decisive action across all levels of government, working with investors, industry, and communities, the energy transition will fall short of what Australia needs.

In response to this challenge, the Commonwealth government is reforming the Environment Protection and Biodiversity Conservation Act to de-risk approvals processes for the environment and investors.  Through the Net Zero Authority’s work, it is addressing infrastructure gaps to coordinate and manage major projects in our regions, streamlining foreign investment processes, developing new ways to attract capital, and modernising Australian financial markets.

The Treasurer signaled significant reform in industry policy balancing competitiveness, distribution of opportunity, resilience, and national security anchored to Australia’s climate and energy goals.

The Commonwealth government, he says, will be guided by five tests:

• Whether Australia can be competitive in the industry, by leveraging and building up our comparative advantages.
• Whether it contributes to an efficient and orderly pathway to net zero.
• Whether it builds the capabilities and resilience of people and regions.
• Whether it improves Australia’s national security and economic resilience and supports the strategic objectives of our global partners.
• And whether it recognises the key role of the private sector and delivers genuine value for money for the government.

This has led the Commonwealth to identify 4 priority areas underpinned by and dependent on abundant, cheap, reliable renewable energy:

• Refining and processing critical minerals.
• Producing renewable hydrogen and its derivatives like ammonia.
• forging green metals such as green iron, steel, and bauxite.
• Supporting manufacturing of generation and storage technologies, including batteries.

This is good news for WA.

You have heard of the so-called ‘climate wars’ and the phrase ‘wasted decade’ being batted around in Australian politics; well at least one outstanding Australian stood tall throughout, identifying a pathway for Australia to make an outsize contribution to the global transition to a green economy.

Professor Ross Garnaut AC has played a significant role in the transformation of the Australian policy and business landscape over the past 40 years plus.  We are proud he is ‘made in Western Australia’ having been born and grown up here.

As an outstanding economic adviser to Prime Minister Hawke, among many other roles, Professor Garnaut worked with Sir Charles Court’s WA government on behalf of the Commonwealth government providing crucial advice to the Hawke government, leading to the Commonwealth assisting the WA government, just as the application of the ‘take or pay’ provision underwriting the initial investment by Japanese companies in the fledging LNG industry, threatened to bankrupt WA.

In 2007 and updated in 2011, Professor Garnaut conducted a review on Climate Change and Policy Response to Climate Change for the Federal State, and Territory governments examining the impacts of climate change on the Australian economy and recommending medium to long-term policies to improve Australia’s prospects for sustained economic prosperity.  Among numerous publications, he has researched, written or edited several seminal books on Australia’s low carbon opportunity, the latest of which was published in 2022 by La Trobe University Press in conjunction with Black Inc, titled ‘The SuperPower Transformation’ a sequel to his bestselling book ‘Superpower’.  In the last decade, he has gone into business with Zen Energy as Australia’s first electricity retailer to have a near-term science-based emissions reduction target generating 100% renewable energy.

Oh! Did I mention Professor Garnaut was Australia’s Ambassador to China in 1985-88 and has a long connection with Japan amongst other things through his time as visiting professor at Hitotsubashi University and Nihon Keizai Kenkyu Centre?

These are to name but a few of his many achievements.

Today Professor Garnaut will speak on WA in the Zero Carbon Japanese and World Economy.

Richard Sandover

9 November 2023